| Giving : Making a Gift : Tax Benefits
It's Smart.
You can get the most advantageous tax benefits available under the law by working with the Community Foundation. Some of these benefits include:
- Your gift to the Community Foundation is a gift to a public charity - meaning your contribution may result in the best charitable income tax deductions (50% of your adjusted income for cash gifts and 30% for appreciated long-term securities) allowed on your federal income tax return.
- You avoid capital gains taxes on gifts of long-term appreciated assets such as stock (both public and privately owned companies) and real estate. Your deduction will be valued at full fair market value, but you won't have to recognize the built-in gains as income.
- Any fund you establish at the Community Foundation also receives the best tax treatment permitted under the Internal Revenue Code, unlike contributions to private foundations (which pay annual taxes and are subject to minimum distribution rules and other excise taxes). See Foundation Services for information on how a fund at the Community Foundation is a competitive option to establishing a private foundation and how we can assist existing private foundations.
- Michigan taxpayers can receive a State of Michigan Community Foundation tax credit for gifts to an endowment fund at the Community Foundation. Michigan law permits individuals, trusts and estates paying Michigan income taxes and those who pay Michigan single business tax to claim a credit of up to 50% of the amount contributed (subject to certain limits) to an endowment fund at the Community Foundation.
In addition to the many tax benefits you receive, you also get other benefits, including:
- No start-up fees for creating a fund at the Community Foundation.
- Cost savings realized for administration and investment services due to our size and professional staff efficiency.
Please call us (313) 961-6675 to learn more about the many benefits of working with the Community Foundation.
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